Telecom - Department Structure

Highly Confidential MSE 2015

Michel Chamat

Department Structure Telecom Companies

1


Functional Organizational Structure

2

• The Functional Organizational Structure is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas.

• Advantages:

1. Increases the work efficiency of the company, as major sections functions only in their specified fields.

2. Increases the performance of individuals, as every member is placed in his specific department.

3. Increases the knowledge and experience of individuals, as employees from the same field are placed in the same team or department and share their knowledge with others.

• Disadvantages:

1. Communication between different departments becomes more difficult due to the limited relations between the sections.

2. Harder decision-making process, as different sections ,having different points of view, share the same execution board.

Despite having some disadvantages, the functional organizational structure proved to be, especially in the telecommunication field, the most efficient department structure. As reported in 2014, these worldwide companies are serving around 25% of the global population , and are making revenues of over 400 billion $ combined.


Alfa - Touch

Lebanese Companies

3


Department Structure : ALFA

4

Chairman & CEO

VP, HR, Admin and Legal Affairs

Employment and Legal Issues

Chief Communications Affairs Officer

Communication and PR

Chief Technology Officer

Ensures proper function and safety of the data center

Chief Corporate Strategy & Quality

Officer

Chief Commercial Officer

Marketing and Customer Service

Chief Financial OfficerManages financial planning

and record keeping

Legal Counsel

Legal Cooperation and International Law

AdvisorProvide Expert Advices and

Consultancies

Human Resource

IT TeamSoftware Development, Solutions and Security

Network

Public Relations

Media Relations

Engineering Team

Sales and Marketing Department

Customer Service

Quality Department

Accounting and Reports Team

External Relations

Research Department

Finance Department

Strategic Planning

Management Department

Internal Audit


Department Structure : TOUCH

5

CEO

Chief Financial Officer Chief Commercial Officer

Chief Operations Officer

Chief Information and Security Officer

Chief Corporate Management Officer

Head of Human Resources Department

Finance Department

Strategic Planning



Internal Audit

Legal Counsel



Consultancies


Engineering Team

Media Relations

Public Relations

Customer Support

Investor Relations Unit

External Relations

Quality Department

Research Department


Network

Human Resource


Lebanese Companies Structures

6

COO – Chief Operation

Officer

CCO – Chief Commercial

Officer

Financial Officer Level 1

HR Level 1

Corporate Management

Officer Level 1

ALFA

NOUnique chairman and

CEO

YES

YES

YES

YES

TOUCH

YES

YES

YES

YES

YES

Legal Affair Officer – Level

1YES

NOCOO heads the General

Counsel and the Law Department

Technology Officer - Level

1YES YES

ALFA TOUCH

Investor Relations Unit NO

YESThe company is owned

by ZAIN


Summary : Lebanon

7

• Two cellphone operating companies : ALFA and TOUCH.

• Department structures : Very similar ,with large execution boards managing all different sections of the company under a functional organizational structure.

• In both companies, different departments are managed by Chief officers and supervised by the CEO :

1. Chief Commercial Officer : Deals with Media, Marketing and Production branches of the company. Heads the sales, engineering and marketing teams.

2. Chief Financial Officer : Responsible for financial planning and record keeping. Heads the financial and managerial teams.

3. Chief Human Resources Officer: Manages the recruitment and employment of staff. Has direct contact with the HR Generalists.

4. Chief Technology Officer: Ensures the proper function and the security of the data center.

Heads the IT and technical teams.

5. Chief Corporate Management Officer: Supervise the quality of work within the company.Heads the quality department and external relations with

investors and other companies.

• Despite the similarities, the companies adapted different approaches when dealing with legal affairs and investor relations. The main reasons for making changes in these departments are the availability of a foreign investor and the involvement of the chairman in the ongoing business of the company.


Summary : Lebanon

8

• Availability of a Chief Operation Officer - COO : As ZAIN is a major stakeholder of TOUCH, the company has a COO who oversees the ongoing business in the company and reports to the CEO. The chief officer also heads the legal counsel, who oversees the legal affairs of the company, and the advisors for expert advices about the ongoing and future businesses.

• Availability of a Chief Legal Affairs Officer :As the chairman of ALFA oversees the business directly as a CEO, no COO is appointed in the company and the legal affairs department is supervised by a chief officer.

• Having the services of both ALFA and TOUCH covering only Lebanon, the execution board focuses mainly on national users, as no global nor regional marketing officers are needed. To maximize the work efficiency of these Lebanese companies, the previous department structures were implemented by separating the functions by expertise and minimizing the number of departments and board members.


Etisalat – Zain – Ooredoo – Syriatel – STC – Mobinil

Regional Companies

9


Department Structure : ETISALAT - UAE

10

CEO

Chief Financial OfficerManages Financial Planning

and Record Keeping

Technology and Operations Head

Group


Manages media, marketing and customer service

Internal Affairs Head GroupChief Internal Audit

Chief Information Officer

Ensures the safety and proper operation of the data center

Finance Department

Strategic Planning


Chief Strategy Officer


Media RelationsAds, Social Media, and

Commercials

Public Relations

Costumer Service


Engineering Team

Chief Digital Services

VP of International Roaming and Mobile

Services

Chief Procurement Officer


Consultancies


Internal Audit

Chief Legal and Regulation Officer

Chief Internal Control Office

General Counsel

Corporate Secratary


VP of Talent Management and

Human Resourcing

Human Resources


Network


ETISALAT – Recent Developments

11

• Based in the UAE , operates in 18 countries in Asia and Africa.

• In 2010 and 2011, major losses were reported by the company due to “competition and drop in prices”. The company reported a 24% decrease in the net profit in 2012, and therefore eyed restructuring to cut losses. (Reuters,2012)

• In 2012, ETISALAT owned 66% of the shares in Egypt and appointed a new CEO , as the former CEO of Etisalat Misr was transferred to the UAE. Also, major changes were done in the excusive board this year, as new appointments were made in the following posts : group chief executive, chief financial officer , chief marketing officer, new chief regional officers for Asia ,Africa, and the Middle East. (Reuters,2012)

• As reported by the company, the company sold 9.1% of its shares in PT XL Axiata Tbk in 2012 for 1.87 billion AED. (Etisalat,2012)

• Also as confirmed in 2015, Etisalat sold all its shares in the French Speaking West-Africa to Maroc Telecom ,for 474 Million Euro, due to the increasing competition in this region as well as the language gap between the company and the communities. (Reuters,2015)


ETISALAT - Department Structure Analysis

12

1. Public Relations Department :

The department has been able to bring forward the point of view of the company to the public, raising their earning profits.Role : Establish and maintain relations that results in mutual benefits.Activities : Promotes the company in a good way.

Develops good relationships with stockholders.Creates efficient ways to advertise and promote the activities of the company.

2. Media Relations Department :

The company uses its website efficiently enough to attract various costumers.Role : Handles everything related to the company in front of the public.Activities: Maintains good contact both locally and internationally.

Manages interviews given by the head officers of the company. Manages all the activities related to the media. Affects the image of the company.

3. Communication Department:

Criticized for keeping their high fees, but managed to minimize the power distance between employees.Role : Establish and maintain good relations with employees, consumers and community.Activities: Good salaries for employees but some sort of dictatorship is applied .

Concentration on consumer relations due to competition.Maintains common ground with traditions and living conditions of the community.


ETISALAT - Department Structure Analysis

13

4. Financial Department

Report decrease in revenues in the past years, but managed to sell the company’s shares in competitive regions.Role : Provides the head board with the financial changes in the company.Activities : Calculates the yearly profit or loss of the company.

Calculates the comprehensive income.Provides the cash flows for the year and a summary of the accounting policies.

5. Regulatory Department :

Role : Make sure the company abides the local and international lawsActivities: Provides the board with feedbacks and possible issues about the company

Establish contacts with federal and governmental personnel to work on specific issues

6. Information Department:

Managed to implement major upgrades on the services of the company.Role: Make sure the company’s data base and data center are safe and clear from problems.Activities: Provides technical solutions for the customers and employees.

Develops and maintains good network connection within the company.Provides good security cover for the data center.


Department Structure : ZAIN - KSA

14

CEO


and Record KeepingChief Internal AuditorChief Commercial

OfficerChief Strategy OfficerDevelops strategic initiatives

Chief Regulatory Officer


Communications and Investor Relations

Director

Finance

Strategic Planning

Director, International, Wholesale and

Roaming

Sales and MarketingLocal and Regional Officers

Media Relations

Public Relations

Customer Service


Consultancies


Internal Audit

General Counsel


Strategy and Business Development

Regional CEOs


Consultancies

Human Resources

Engineering Team


Network


Department Structure : OOREDOO - Qatar

15

CEO

Chief Operations Officer

Chief Human Resources Officer


and Record KeepingBusiness Head GroupStrategy and

Wholesale Head GroupChief Technology

Officer

General Counsel

Chief Legal and Regulatory Officer



Consultancies

Finance

Strategic Planning

Internal Audit

Human ResourcesTraining and Recruitment

Customer Service

Chief Strategy Officer


Media Relations Chief Wholesale and International Officer

Enterprise Marketing

Chief New Businesses Group Officer

Chief Small and Medium Business Unit

Officer

Chief Sales and Service Officer

Chief Marketing Officer

Sales and MarketingLocal, Regional and

Worldwide Marketing Officers

Engineering Team


Network


Department Structure : SYRIATEL - Syria

16

CEO

Chief Admin and Legal Affairs Officer


Chief Human Resources and

Administration Officer

Chief Information and Security Officer

Chief Corporate Management Officer Chief Financial Officer

General Counsel

Contracting and Legal Advisory Unit

Provide Expert Advices

Regulatory and Governmental Affairs

Unit


Human Resource and Administration

DepartmentSales and MarketingLocal and Regional Officers

Quality Department

Customer Service


Internal Auditor

Procurement Department

Investor Relations Unit


Network

Management Information Systems

Department

Technical Department

Finance

Strategic Planning


Internal Audit


Department Structure : STC - KSA

17

CEO

Customer Service Head Group Business Head Group


and Record Keeping

Technology and Information Head

Group

Sales and Marketing Head Group

Senior VP of Projects and HR

VP of Customer Care and Experience

VP of Consumer Unit

VP of Services

Customer Service

VP of Finance

Finance

Strategic Planning

VP of Procurement and Support Services


VP of Enterprise Business Unit

VP of Small and Medium Enterprise

Sales

VP of Business Operations

VP of Business Development

VP of Marketing

VP of Sales

VP of Wholesale

Sales and MarketingLocal and Regional Marketing


Commercials

VP of Technology and Operations

Engineering TeamResearch and Development

VP of Information Technology


Network

VP of Strategic Planning

VP of Field Operations

VP of Regulatory Affairs

Human ResourcesTraining and Recruitment



Department Structure : MOBINIL - Egypt

18

CEO

Chief Regulatory and Wholesale Officer

Chief Corporate, Strategy and Business Development Officer



Chief Customer Service Officer


and Record Keeping

General Counsel


Sales and MarketingLocal and Regional Officers

Enterprise Marketing

Manager, Public Relations and Media


Commercials

Public Relations


Consultancies


Mergers & Acquisitions

VP, Commercial

Human Resources

Customer Service

Director of the Public Opinion Research

Center

Engineering Team


Network

Finance

Strategic Planning

Internal Audit


Regional Companies Structures

19

COO – Chief Operation

Officer


Officer

HR Level 1

ETISALAT

NO

YES

NO

ZAIN

NO

YES

NO

OOREDOO

YES

NO

YES

SYRIATEL

NO

YES

YES

STC

NO

YESHead Group

YESHead Group

MOBINIL

NO

YES

NO

Customer Service – Consumer

Officer Level 1

NO NO NO NO YESHead Group YES

Internal Audit Level 1 YES YES NO NO NO NO


Summary : Regional

20

• Six cellphone operating companies : ETISALAT, ZAIN, OOREDOO , SYRIATEL, STC and MOBINIL

• Similarly to the Lebanese organizations, the department structures of many regional companies are the same. The Functional Organizational Structure is adapted to distribute the work by functions on the different sections, with an executive board of chief officers.

• In comparison with Lebanese companies:

Major differences :

1. Wholesale officers : Introduce the new services provided to different customers, companies and sectors .

2. Regional Marketing officers: Handle marketing business in different countries and specific geographic areas.

3. Head Group: Functions of major sections are divided on more than one chief officer.

Main Similarities :

Executive boards mainly composed of Financial, Regulatory, Marketing and Technology chief officers. These directors are essential to manage the different functions of these regional companies. • To supervise the ongoing business in the company and to manage the marketing of its worldwide branches, OOREDOO and

STC both have a Chief Operations Officer ,who reports directly to CEO, and Global Marketing Officers in different countries around the globe.

• Depending on the community, Customer Services in the Middle East region have a lower structural level in most of the companies.


Vodafone – China Mobile – AT&T Mobility – Telekom - Orange

Worldwide Companies

21


Department Structure : VODAFONE

22

CEO

Chief Commercial and Operations Officer



and Record Keeping

Group Strategy and Development DirectorDevelops strategic initiatives

Group Enterprise Director Regional CEOs

External Affairs Director

Media Relations

Public Relations

General Counsel and Company Secretary


Finance

Strategic Planning

Head of Digital

Head of Fixed Access and Convergence

Information Technology Director

IT TeamSoftware development, Solutions and Security

Network

Product Management Director

Sales and Marketing Team

Customer Service



Consultancies

Engineering Team

Corporate Affairs

MEA and APAC, CEO

CEOs in Middle East and Asia

CEOs in Africa

Europe, CEO

Chief Financial Officer, Europe


Department Structure : CHINA MOBILE

23

CEO

Executive Directormarketing, data business and

corporate customer management of the Company

Executive Directorplanning and construction, network

operation, business support, information management of the

Company

Finance


Consultancies

Company Secretary

Strategic Planning

Media RelationsAds, Social Media, Commercials

Sales & Marketing TeamHandles Local and Regional Business

Public Relations

Chief Financial OfficerManages corporate affairs, finance and

internal audit of the Company

Legal Cooperation and International Law Network

IT TeamSoftware development, Solutions and

Security

Engineering TeamResearch and Development

Accounting and Reports Team Customer Service


Department Structure : AT&T

24

CEO


and Record Keeping


IT and Customer Service Head Group

Global Marketing Officer

Manages media relations

Internal and Legislative Affairs

Head Groups

Senior Executive , Human Resources

Corporate Financial Planning

Finance

Finance Services

Strategic Planning


CEO, Mobile and Business Solutions


MobilityEmployment of New working

habits

Customer Service

Executive Operations

Home Solutions and Chief Strategy Officer

Architecture and Design

Chief Technology Officer , AT&T Labs

President of Technology

Development

External and Legislative Affaire

General Counsel


Consultancies


Chief Compliance Officer

VP ,Marketing Communication

VP, Network and Product Planning

Supply Chain and Fleet Operations


Media Relations

Talent Development and Chief Diversity

Officer

Human Resources


Department Structure : TELEKOM

25

CEO


and Record Keeping

Europe and Technology

Data Privacy, Legal Affairs and Compliance

Senior VP, CommunicationsSales Director Chief Human Resource

Officer

Chief Compliance Officer

Executive VP, Controlling

Executive VP. Investor Relations

Finance

Strategic Planning

General Counsel


CEO, T-Mobile Poland

Research and Innovations

I T T e a mSoftware development, Solutions and Security

Network

Digital Services



Media Relations

Public Relations

Customer Service

Human Resource

Regulatory, Strategy and Economics


Department Structure : ORANGE

26

CEO

CEO General Secretary Chief Human Resources Officer


and Record Keeping

Communication and Public Affairs Head

Group

Technology and Operations Head

Group

Innovation and Marketing

Products development

Company Secretary

General Counsel

VP, Sourcing and Supply Chain

Head of European and Economic Regulations


VP, Merges and Acquisitions

Head of Financial Communication and Investor Relations

VP, Strategic Partnerships

Finance Director and Treasurer

Head of Corporate and Financial Legal

Department

Human Resources Director

VP, Healthcare

Employer Branding and Campus

Management Director

Brand Director

Chief Costumer Experience and Mobile

Banking Officer

VP, Mobile Payment and NFC

Engineering Team


Public Affairs Directors

Communication and Brand Director

Brand Director

Press Services Director

Costumer Services

VP, Partnerships and connected objects

Marketing Director

VP, Technology center

VP, Products and Services

VP, Marketing Vision


Worldwide Companies Structures

27


Officer

Financial Officer Level 1

HR Level 1

Regulatory Officer Level 1

Customer Service – Consumer

Officer Level 1

Technology Level 1 YES

VODAFONE

YES

YES

NO

NO

NO

YES

TELEKOM

YES

YES

YES

YES

NO

YES

CHINA MOBILE

YES

YES

NO

NO

NO

YES

AT&TMOBILITY

YES

YES

YES

YES

YES

YES

ORANGE

YES

YES

YES

NO

NO


Summary : Worldwide

28

• With their services spread around the globe, these worldwide cellphone operating companies use the Functional Organizational Structure : ORANGE, TELEKOM, AT&T, CHINA Mobile and VODAFONE.

• CHINA Mobile have a board of only three executive directors, taking control over different functions of the company: CCO, Chief Financial Officer and Chief Technology Officer. The chief officers have multitasks and most of the company’s business is commonly supervised..

• While in the four western based companies, the functions are distributed as widely as possible. AT&T and VODAFONE have more chief officers than the others, with every division functioning independently of the others. In addition, AT&T has a chief customer service officer while VODAFONE have Regional CEOs in the execution board.

• Due to their worldwide and regional services, marketing departments have major roles in these companies, with global and regional marketing officers managing the marketing business in different regions and countries.

• Despite their smaller execution boards ,TELEKOM and ORANGE have of financial, marketing, technology and human resources chief officers. The marketing section in these companies are widely invested, as the services of these European companies covers a huge part of the world.


Summary : Worldwide

29

• In comparison with Lebanese Companies :

Major Differences :

1. Larger Execution Boards : Different functions of the companies have many chief officers for efficiency reasons.

2. Wider Marketing Targets : Company’s services are not limited to local geographic areas.

3. Technology and Marketing Sections: Widely invested due to national and regional competition, and for customer’s satisfaction

Major Similarities :

• Worldwide companies, as well as Lebanese ones, have their department structures based on the functional organization chart. The CEO oversees the company’s business and controls the executive board, where each chief officer heads a major department in his specific section.

Leadership & Management

Telecom - Department Structure